Finnvera receives €17.5 million of ERDF funding for venture capital investments

11.07.2011

The programmes of the European Regional Development Fund (ERDF) have granted Finnvera €17.5 million for venture capital investment operations. The decision was made by the Ministry of Employment and the Economy. Through the ERDF funding, Finnvera can continue start-up stage investment operations within its existing scope and cater for the funding needs of Finnish start-up enterprises.

Finnvera makes venture capital investments in innovative start-up enterprises seeking growth and internationalisation. The investments will be made through Finnvera's subsidiary, Seed Fund Vera Oy.

"In most cases, Finnvera is the first equity investor in an enterprise as, aside from business angels, Finland has very few private venture capital investors who focus on investing in start-up enterprises. Private venture capital investors prefer investing in growth enterprises that have already shown their skills in internationalisation. Finnvera can take a higher risk, and we meet this demand for start-up stage funding through our venture capital investments," says Leo Houtsonen, Managing Director, responsible for Finnvera's venture capital investment operations.

Finnvera established the start-up enterprise fund six years ago. So far, the assets in the fund have originated from the Finnish Government and institutional investors. Approximately €68 million in total has been invested in 165 enterprises. The investments are minority investments, which means that the fund's ownership in enterprises typically varies from 10% to 40%. The average investment is around €360,000.

Through investments, Finnvera has a positive impact on the establishment, growth and internationalisation of Finnish growth companies, and on creating new jobs.

For further information, please contact:
Erkki Välttilä, Investment Manager, tel. +358 20460 3580
Mikko Paakkanen, Lawyer, tel. +358 20460 3983
Sanna Hynynen, Controller, tel. +358 20460 3985